Sales Tax Regulations

State of Rhode Island - Division of Taxation

Sales and Use Tax

Regulation SU 87-24

Commercial Ships, Barges or Other Vessels of Fifty (50) Tons Burden or
Over

The Rhode Island sales and use tax does not apply to sales made to commercial ships,
barges or other vessels of fifty (50) tons burden or over, primarily engaged in interstate
or foreign commerce. The exemption applies to the repairs, alterations or conversions of
such vessels; it also applies to the sale of property purchased for the use of such
vessels, including provisions, supplies and material for the maintenance and/or repair of
the same.

Sales, as outlined above, continue to be taxable when made to ships, barges or other
vessels of less than fifty (50) tons burden, whether or not primarily engaged in
interstate or foreign commerce.